A Crude Two Weeks For Energy

The recent carnage in the energy sector has been lost in the shuffle, so let’s take a quick look.

Below is a chart of crude oil’s weekly chart dating back three years. With this week’s decline, prices fell to their lowest level since December 2021. And the one-week rate of change shows this is the largest one-week decline since early 2020. 😬

We mention it because the oil price decline is also showing up in energy-related ETFs. Their 10-day performance shows declines ranging from 6% to 22%. 🔻

With the energy sector shifting from last year’s best performer to this year’s worst, many investors are trying to determine whether the downward trend will continue or if this is a potential buying opportunity. For now, we’ll have to wait and see. 👀

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Cocoa and OJ Futures Keep On Rolling

It was a slow day out there, so we’re back with everyone’s favorite topic: commodity futures. 🙃

At the end of August, we discussed cocoa futures following in orange juice futures’ footsteps and breaking out to new all-time highs. Since then, weather conditions and crop outlooks have not improved, causing prices to rise even further.

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Grains Lose Their Gains

Grain commodities were the talk of the town for a bit during the pandemic, as soaring prices pushed up producer and consumer inflation. They’ve not gotten a lot of headlines lately, as a slow and steady decline is less interesting than a sharp increase. 😴

However, they were back in the news today after making a swift move lower. The USDA quarterly grain stocks report showed higher stocks and production than initially anticipated. Wheat was hit the hardest, though soybeans and corn were both down too. 📉

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Cocoa Prices Go Loco

With Halloween coming up next week, some consumers will likely be shocked at the price of candy due to the elevated price of cocoa.  😱

The vital ingredient in chocolate is hitting its highest levels since 1979 as hotter and drier weather patterns stunt this year’s crop. Roughly 75% of global cocoa beans come from the Ivory Coast, Ghana, Cameroon, and Nigeria, where consistent temperatures, high humidity, abundant rain, and nitrogen-rich soil allow it to thrive. 

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